U.S. unemployment benefits applications increase slightly

Published 12:59 pm, Thursday, June 12, 2014

In this Jan. 22, 2014, file photo, recruiter Valera Kulow, left, speaks with job seeker Leonardo Vitiello during a career fair in Dallas.

In this Jan. 22, 2014, file photo, recruiter Valera Kulow, left, speaks with job seeker Leonardo Vitiello during a career fair in Dallas.

Photo: AP File Photo — L.M. Otero

U.S. unemployment benefits applications increase slightly

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WASHINGTON >> More Americans filed for unemployment benefits last week, but claims for jobless aid remain near pre-recession levels.

The Labor Department said Thursday that weekly applications for unemployment benefits rose 4,000 to a seasonally adjusted 317,000. The four-week average, a less volatile measure, increased to 315,250. These figures are near the jobless claims levels before the outbreak of the Great Recession in December 2007.

Applications are a proxy for layoffs, so the claims data show that employers are dismissing fewer workers. When businesses are confident enough to hold onto staff, they may also step up hiring. That is a positive sign for economic growth, as more jobs usually help lift consumer spending.

Last Friday, the Labor Department said employers added 217,000 jobs in May as the unemployment rate held steady at 6.3 percent.

The steady hiring after the economy shrank during the first three months of the year because of the winter weather point to faster growth ahead.

Monthly job gains have averaged 234,000 for the past three months, up sharply from 150,000 in the previous three. The May unemployment rate, which is derived from a separate survey, was the lowest rate in more than five years.

Gross domestic product fell 1 percent in the first three months of 2014. Many economists expect that number could be further revised downward, while growth returns as warmer weather has generated more hiring and consumer spending.CORRECTION: The last paragraph has been updated to correct the year to 2014. It previously stated the gross domestic product fell 1 percent in the first three months of 2013.